What is Supply Chain Management and what does it involve?

Supply chain management is a critical part of operations in any business. It involves tracking and managing the flow of materials and services from suppliers to customers, connecting business processes throughout the supply chain. Supply chain management looks at the entire chain – from resources to suppliers to the end customer.

Logistics is a term used for the process of obtaining, producing, and distributing material and products to the correct place and in the right quantities. Not only does it focus on the transportation and delivery of goods, but also on the storage, handling, packaging, and different transportation modes. 

Procurement is a dynamic, fast-paced, and rewarding industry that is continually evolving in response to changing trends. Procurement involves sourcing goods and services for a business and is a key part of the overall supply chain process.

Procurement in Supply Chain Management

Procurement and Supply Chain Management are usually mentioned together. Procurement, however, is one part of the larger supply chain process. Procurement refers to the process of sourcing the goods and services that businesses need to operate. It is situated at the beginning of the supply chain.

In addition to internal stakeholders, all members of the business depend on procurement professionals. In the supply chain process, procurement ceases once the company has possession of the goods.

Commercially-minded procurement officers are in demand by businesses across the globe. A Diploma of Business (Procurement) (BSB50120) will teach you the vital skills to develop, implement and review strategies as a successful procurement professional.

SKILLS THAT EMPLOYERS ARE LOOKING FOR

Critical thinking is essential in logistics management as a variety of issues or unexpected events may arise that you will need to find effective solutions to – and fast. Working under pressure and to deadlines is crucial for any logistics professional, as the movement of goods and resources is completely dependent on strict time schedules. Employers are looking for professionals who possess analytical skills, communication and people management skills, as well as strong customer service skills to be able to work well with a variety of stakeholders. A proficient knowledge of logistics software and technology is also very sought after by employers, or at least, the ability to quickly learn new technology and software.

HARD SKILLS

  • Numerical and analytical skills
  • Process development and management
  • Proficiency in logistics technology
  • Data analysis skills

SOFT SKILLS

  • Critical thinking
  • Interpersonal skills
  • Able to work well to deadlines
  • Able to work under pressure

TRAITS

  • Decisive
  • Problem-solving skills
  • Logical reasoning
  • Calm under pressure
  • Continually seeking improvement

JOB ROLES

Category Manager

Average Salary
$103,000

A Category Manager is responsible for analysing and understanding product, logistic, and marketing needs within their category. In supply chain, this often means ensuring efficiency, availability and transportation of goods. It also may include managing vendors and partnerships with suppliers.

Procurement Manager

Average Salary
$100,000

Procurement managers apply the most appropriate procurement strategy for a business. Procurement work can be challenging, ranging from fostering relationships with suppliers to build strong partnerships, through to maximising supply chain efficiency with the available resources.

Purchasing Manager

Average Salary
$77,000

A Purchasing Manager is an important role in supply chain and logistics. Purchasing Managers are often responsible for fostering positive partnerships with suppliers, budgeting and planning for new and existing strategies and products, and understanding how to find inefficiencies in the supply chain and address them going forward.

Logistics Manager

Average Salary
$82,000

Logistics managers are responsible for overseeing the entire supply chain process, particularly the distribution and transport of goods. This role also has responsibilities in stakeholder management, budgeting, and overseeing inventory management.

Transport Manager

Average Salary
$103,000

Professionals in this role have key areas of responsibility in coordinating, planning and directing transport operations for an organisation. This role requires great communication skills, as well as a keen eye for detail.

Warehouse Manager

Average Salary
$65,000

Warehouse managers look after important functions such as processes, systems and people within an organisation, within the warehouse and distribution areas.

Logistics Supervisor

Average Salary
$72,000

A Logistics Supervisor is responsible for managing inventory, meeting regulatory requirements and reading and interpreting transportation schedules. They are responsible for the logistics of goods and services within a supply chain and often work under a manager.

Supply Chain Manager

Average Salary
$104,000

The responsibilities of a professional in this role depend greatly on the size and nature of the organisation, but typically SCM’s oversee the entire production process from start to finish. With supply chain processes becoming more streamlined and globally focused, this role is highly sought after with attractive career benefits.

Logistics Administrator

Average Salary
$62,000

Professionals in this role have a variety of responsibilities to assist all supply chain processes and ensure all documentation, contracts and agreements are managed. The responsibilities in this role are dependant on the size of the logistics organisation.

Warehouse Administrator

Average Salary
$64,000

Within an organisation, warehouse administrators are generally involved in stock management and inventory processes, as well as communicating with any external stakeholders like delivery companies and warehouse customers.

Category Manager

Average Salary
$103,000

A Category Manager is responsible for analysing and understanding product, logistic, and marketing needs within their category. In supply chain, this often means ensuring efficiency, availability and transportation of goods. It also may include managing vendors and partnerships with suppliers.

Procurement Manager

Average Salary
$100,000

Procurement managers apply the most appropriate procurement strategy for a business. Procurement work can be challenging, ranging from fostering relationships with suppliers to build strong partnerships, through to maximising supply chain efficiency with the available resources.

Purchasing Manager

Average Salary
$77,000

A Purchasing Manager is an important role in supply chain and logistics. Purchasing Managers are often responsible for fostering positive partnerships with suppliers, budgeting and planning for new and existing strategies and products, and understanding how to find inefficiencies in the supply chain and address them going forward.

Logistics Manager

Average Salary
$82,000

Logistics managers are responsible for overseeing the entire supply chain process, particularly the distribution and transport of goods. This role also has responsibilities in stakeholder management, budgeting, and overseeing inventory management.

Transport Manager

Average Salary
$103,000

Professionals in this role have key areas of responsibility in coordinating, planning and directing transport operations for an organisation. This role requires great communication skills, as well as a keen eye for detail.

Warehouse Manager

Average Salary
$65,000

Warehouse managers look after important functions such as processes, systems and people within an organisation, within the warehouse and distribution areas.

Logistics Supervisor

Average Salary
$72,000

A Logistics Supervisor is responsible for managing inventory, meeting regulatory requirements and reading and interpreting transportation schedules. They are responsible for the logistics of goods and services within a supply chain and often work under a manager.

Supply Chain Manager

Average Salary
$104,000

The responsibilities of a professional in this role depend greatly on the size and nature of the organisation, but typically SCM’s oversee the entire production process from start to finish. With supply chain processes becoming more streamlined and globally focused, this role is highly sought after with attractive career benefits.

Logistics Administrator

Average Salary
$62,000

Professionals in this role have a variety of responsibilities to assist all supply chain processes and ensure all documentation, contracts and agreements are managed. The responsibilities in this role are dependant on the size of the logistics organisation.

Warehouse Administrator

Average Salary
$64,000

Within an organisation, warehouse administrators are generally involved in stock management and inventory processes, as well as communicating with any external stakeholders like delivery companies and warehouse customers.

What does an average day look like as a logistics professional?

Working as a logistics professional means reporting to either the CEO, operations manager or logistics manager about any issues that arise in the logistics process and presenting solutions to fix those problems. You may be:

  • Checking in on storage requirements
  • Monitoring delivery schedules
  • Finalising modes of transport for particular goods
  • Conversing with suppliers and partners about scheduled deliveries and arrivals
  • Writing up contracts
  • Conducting meetings to negotiate contracts or mediate issues

A logistics professional will be working with other employees every day to make sure everyone is on the same page regarding particular tasks, responsibilities, deliveries or transportation schedules.

Transport and Logistics in Australia snapshot

As digitisation increases and customer expectations transform, Australia’s logistics industry is due for a shake-up, particularly with the fast-paced adaptation style that was necessary to navigate the events of 2020.

The Transport and Logistics sector in Australia had an estimated operating profit of $10.14 billion in 2018. 1

The Integrated Logistics sector (door-to-door transport through supply chains, distribution and storage) will most likely be affected by global shifts in oil and fuel prices despite Australia’s projected positive recovery from the pandemic. 2

Integrated Logistics Statistics

  • Market Size = $90 billion
  • Number of businesses = 84,000

17% of Chief Supply Chain Officers (CSCO’s) are now women, a worthy comparison to the 6% recorded in 2019.3 This is also the highest rate recorded in the last four years. As of 2017, 20% of people working in the wider transport industry are women.3

1National Industry Insights, 2019 IBIS World, 2020
3Gartner Inc, 2020

Industry Insights

ONLINE LOGISTICS COURSES

Australia is a big country, with unique supply chain considerations that don’t exist elsewhere in the world. The supply chain sector employs more than a million Australians and accounts for nearly 10% of annual gross domestic product (GDP). There are many aspects to managing supply chains, from sourcing products to transportation and storage. At every stage, procurement and logistics professionals play a crucial role in acting as the ‘go-between’, bringing manufacturers and customers together.

Excel in your logistics career and enhance your employment prospects with a qualification like the Diploma of Logistics (TLI50221). This qualification can provide you with a flexible way of getting the comprehensive skills that you’ll need to find success in the sector.

Why study logistics and supply chain management?

Given the current climate and globalisation shift, logistics management and the broader supply chain management is increasingly growing in job opportunities, salaries and overall industry growth. The number of job advertisements on SEEK alone in the manufacturing, transport and logistics industries grew by 2.1% in 2020 alone. Employment as a whole is forecast to grow at an average of 1.5% per year over the next five years, signalling increased growth and potential for job opportunities. Now is the perfect time to launch your logistics career by undertaking the right course to give you the skills and knowledge to succeed. By gaining a nationally recognised qualification, you can ensure you are beginning your new logistics role with confidence, or progressing your career successfully into higher-level management roles with ease.

WHY STUDY WITH CAL?

Real Outcomes. Guaranteed.

Our Real Outcomes Guarantee is our commitment to you and your career goals, ensuring that your studies will give you real-world benefits.

Our team, assessments and feedback are all focused on helping you in your career, not just completing your course. As the only RTO offering this, our guarantee is part of our ongoing work to go beyond just a piece of paper.

tell me more

CAL Careers Hub and Career Counselling

We support you beyond achieving your qualifications – we want to help you be as prepared as possible for taking the next step in your career. Our Careers Hub gives you complimentary and exclusive access to resources and personalised advice from our in-house Career Coach.

My experience with Jenni the career counsellor was exceptional…The feedback was so helpful. She was encouraging too, and made me feel more sure about how to ‘sell myself’ to the target employers. I am very impressed with CAL’s careers hub – many resources that I will use. Thank you very much for your help.

– Samantha M.

Every member of our team is here to support you beyond achieving your qualifications. We want you to be as prepared as possible for taking the next step in your career. As a CAL student you’ll gain access to our Careers Hub through our online learning hub ‘Spark’.

Learn more about the cal career hub

LOGISTICS MANAGEMENT BLOGS